💼 GST in TallyPrime: Complete Setup & Filing Guide 2025 for Indian Businesses

Goods and Services Tax (GST) is the backbone of indirect taxation in India. TallyPrime simplifies GST compliance with automation features that cover everything—from invoice creation to return filing.

This guide will help you activate GST, configure ledgers, make compliant entries, and generate return-ready reports within TallyPrime itself.

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✅ Basic Requirements to Enable GST in TallyPrime

Ensure the following are ready:

• ✅ Latest version of TallyPrime installed
• ✅ Business registered under GST
• ✅ Valid GSTIN
• ✅ Email ID & Mobile Number linked to GST portal
• ✅ Correct Financial Year and State set in company configuration
• ✅ Applicable GST rates as per your industry

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⚡ Quick Shortcuts

Action	Shortcut Key
Open Statutory & Taxation Settings	F11 → F3
GST Details Setup in Masters	Alt + G
GST Reports & Returns	Alt + G → GST
View GSTR-1	Display → Statutory Reports → GST
File Returns (GSTR-1, 3B)	Alt + E

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🛠️ How to Activate GST in TallyPrime

1. Press F11 → F3 (Statutory Features)
2. Set “Enable Goods and Services Tax (GST)” to Yes
3. Enter Company GSTIN, State, and applicable registration type
4. Enable reverse charge mechanism, if applicable
5. Accept settings with Ctrl + A

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📁 Master Configuration

🎯 Ledger Creation

A. Sales Ledger

• Under: Sales Accounts
• Is GST Applicable: Yes
• Set Type of Supply: Goods/Services
• Tax Rate: As applicable (e.g., 18%)

B. Purchase Ledger

• Under: Purchase Accounts
• GST Classification: Local/Interstate
• Tax Rate: As per item (e.g., 5%, 12%, 18%)

C. Party Ledger

• Under: Sundry Debtors/Creditors
• Set GST Registration Type: Regular, Composition, etc.
• Enter Party GSTIN

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🎯 GST Tax Ledgers

Create three tax ledgers:

• CGST (Central GST)
• SGST (State GST)
• IGST (Integrated GST)

Each under: Duties & Taxes → GST

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🎯 Stock Item Creation (for Goods)

• Enable GST: Yes
• Tax Rate: Mention (e.g., 12%)
• HSN/SAC code entry: As applicable

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🧾 Recording GST Transactions

A. Sales Voucher

1. Go to F8 (Sales)
2. Choose party ledger with GSTIN
3. Select stock item
4. Auto-calculate CGST/SGST or IGST based on state
5. Tally generates GST invoice format

B. Purchase Voucher

1. Press F9 (Purchase)
2. Choose vendor ledger
3. Add stock items
4. Tax auto-applied
5. Save invoice for credit claim

C. Credit Note / Debit Note

• Use Ctrl + F8 / Ctrl + F9
• Mention original invoice number
• Used for purchase/sales returns

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📈 GST Compliance Chart

Document Type          Purpose                          GST Impact
------------------------------------------------------------------------
Tax Invoice            Sales entry                       Taxable outward supply
Purchase Invoice       Vendor entry                      ITC claim
Credit Note            Return/discount                   Tax reversal
E-Way Bill             Goods transport > ₹50,000         Mandatory
GSTR-1                 Monthly outward supplies          Filing
GSTR-3B                Summary return                    Filing

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📊 Sample GST Sales Entry Flow

Step	Action
Step 1	Create Customer Ledger with GSTIN
Step 2	Create Sales Ledger with GST rate
Step 3	Select Stock Item (with GST Rate)
Step 4	Choose state (for IGST/CGST+SGST)
Step 5	Auto GST tax calculation by Tally
Step 6	Finalize and save voucher

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📄 GST Return Filing from Tally

TallyPrime supports export of GST returns in JSON or Excel formats. Direct filing is supported via connected platforms.

A. GSTR-1

• Go to Display → Statutory Reports → GST → GSTR-1
• Verify invoice-wise data
• Export JSON
• Upload to GST Portal

B. GSTR-3B

• Auto-populated monthly
• Export summary JSON
• File return online

C. GSTR-9

• Annual return with sales, ITC, and liability details

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🧮 GST Reconciliation Tips

• Cross-check GSTR-2B and Purchase Register
• Match ITC claimed with vendor invoices
• Use Tally’s Mismatch Report to identify errors
• Review reverse charge transactions monthly

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💡 Pro Tips

• Regularly update HSN/SAC codes
• Use F12 configuration for invoice format control
• Enable “Show GST Breakup” in invoices
• Track composition scheme eligibility automatically

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❓ Frequently Asked Questions (FAQs)

• What is the use of enabling GST in TallyPrime?
  It automates tax calculation, reporting, and return generation based on real-time transactions.
• Can I file GST returns directly from Tally?
  Tally supports exporting returns in JSON, which can be uploaded on GST portal.
• What happens if GST is not configured properly?
  Tax may not be calculated, or reports may be incorrect, affecting compliance.
• What is the difference between CGST, SGST, and IGST in Tally?
  Tally determines tax split based on the location of buyer and seller.
• Is GST applicable to service-based companies using Tally?
  Yes, service companies can configure service-ledgers and SAC codes.
• Can I view tax liability summary in Tally?
  Yes, under Display → Statutory Reports → GST → GSTR-3B
• How to correct mismatched GST returns in Tally?
  Use the “Mismatch in Returns” report and rectify voucher-level errors.
• Does Tally support e-invoice and e-way bill?
  Yes, e-invoicing and e-way bill modules are available in premium setups.
• Can I enable both GST and TDS in the same company?
  Yes, you can enable both under F11 → F3 and configure ledgers accordingly.
• What if customer/vendor doesn’t have GSTIN?
  Tally treats it as unregistered, and tax is calculated accordingly (or exempted based on category).

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